S-9 Balance  of  the  Class  2  Securities)  after  giving  effect  to  any  principal  distributions  to  be made on the Distribution Date occurring in that month. • The Series Factor for the month of issuance is 1.00000000. • Based  on  the  Series  Factor  published  in  the  preceding  and  current  month  (and  Interest Rates),  investors  in  any  Class  can  calculate  the  amount  of  principal  and  interest  to  be distributed to that Class on the Distribution Date in the current month. • Investors may obtain the current Series Factor on e-Access. See “Description of  the Securities — Distributions” in the SMBS Base Offering Circular. Exchange Procedures A Beneficial Owner proposing to effect an exchange of any of the Securities for other Securities issued by the Trust or for all or a portion of the Ginnie Mae Platinum Certificate as described more fully  herein  under  “—Exchanges”  or  vice  versa  must  notify  the  Trustee  through  the  Beneficial Owner’s Book-Entry Depository participant.  This notice must be received by the Trustee not later than two Business Days before the proposed exchange date.  The exchange date can be any Business Day other than the last Business Day of the month. The notice must contain the outstanding Class Principal Balances and Class Notional Balances of the Securities to be included in the exchange and the proposed exchange date.  The notice is required to be delivered to the Trustee in writing at its Corporate  Trust  Office  at  One  Federal  Street,  3rd  Floor,  Boston,  MA  02210,  Attention:    Ginnie Mae SMBS Program.  The Trustee may be contacted by telephone at (617) 603-6451 and by fax at (617) 603-6644. No fee will be payable for any exchanges occurring prior to and including October 28, 2004.   For  each  exchange  effected  after  October  28,  2004,  a  fee  will  be  payable  to  the  Trustee  in connection  with  each  exchange  equal  to  1/64  of  1%  of  the  outstanding  principal  balance  of  the Securities surrendered for exchange (but not less than $2,000 or more than $25,000).  The fee must be paid concurrently with the exchange. The first distribution on a Security received in an exchange will be made on the Distribution Date  in  the  month  following  the  month  of  the  exchange.    The  distribution  will  be  made  to  the Holder of record as of the Record Date in the month of exchange. See “Description of the Securities — Exchange of Certain Classes of SMBS Securities for other SMBS Securities” and “Exchange of SMBS Securities for Ginnie Mae Certificates”  in the SMBS Base Offering Circular. YIELD, MATURITY AND PREPAYMENT CONSIDERATIONS General The prepayment experience of the Mortgage Loans underlying the Trust Asset will affect the Weighted Average Lives of and the yields realized by investors in the related Securities. • The  Mortgage  Loans  do  not  contain  “due-on-sale”  provisions,  and  any  Mortgage  Loan may be prepaid in full or in part at any time without penalty. • The rate of payments (including prepayments and payments in respect of liquidations) on the Mortgage Loans is dependent on a variety of economic, geographic, social and other factors, including prevailing market interest rates and general economic factors. The   rate   of   prepayments   with   respect   to   single-family   mortgage   loans   has   fluctuated significantly  in  recent  years.    Although  there  is  no  assurance  that  prepayment  patterns  for  the Mortgage  Loans  will  conform  to  patterns  for  more  traditional  types  of  conventional  fixed-rate mortgage loans, generally: